What can I keep when I’m Bankrupt – The bankruptcy means test.

Any time people stress over Bankruptcy, they worry about just how it will affect their day-to-day lives, and if they will be able to keep their home, vehicle, tools, and other important belongings.

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Among the ways that we can figure this out is by utilizing the insolvency means test. It is something which we take our clients through to present to them how they may or may not be affected, and what Bankruptcy will mean to them.

Personal and household items

Your belongings are always going to be a key aspect of concern with Bankruptcy in Sydney as there is normally an unreasonable fear that someone will come along to your home to take all your stuff away, repossess your couch, the television, even the coffee machine. However this is never going to be the case with pure bankruptcy because typically they don’t care about these valuables. There are a few intriguing exceptions though with Bankruptcy and belongings so if you have specific worries about this make sure that you get some guidance initially or get in touch with us here at Bankruptcy Experts Sydney on 1300 795 575.


With Bankruptcy you might be impacted if you have pricey tools. The guidelines specify that you may keep tools of trade up to a limit of $3,700. However remember that this is founded upon ‘current cost’ therefore if you purchased your tools for $8,000 5 years before, they are likely to be worth far less today. So it is worth considering just how much you would expect them to be valued at, or how much you could obtain for all of them if you needed to sell them. But as a whole, the government doesn’t want bankruptcy to become a barrier to you working, so they don’t desire to deny you accessibility to your equipment. It is quite a good component of Bankruptcy, but sometimes could be confusing. So when it relates to tools of trade, you really don’t need to stress just contact us here at Bankruptcy Experts Sydney for some advice.


People are always concerned about just how Bankruptcy will affect their motor vehicle. So the rule is that you can retain one car or motorbike up to the market value of $7,600.

This takes into account current value, and also the equity. What does this mean? Well, equity deals with the amount of money you have effectively put into the car, and just how much is on a car loan. If you have purchased a car for $10,000 without a loan, then the car can potentially be sold for that amount, and $10,000 can be raised to pay off your bankruptcy debts. Having said that, if you got a car loan for that quantity instead then there would be no benefits to selling your motor vehicle.

How do you value your car? Easiest method is to just have a chat to a used car dealer and inquire just how much they might give you for it– that will present you a rough idea regarding how your vehicle will be impacted by this Bankruptcy process. After that you just have to take into consideration the value of your vehicle loan or financing plan, and whether you are below or above the $7,600 threshold.

If your car is worth more than these threshold amounts get some support, at Bankruptcy Experts Sydney we assist people work through their choices when it relates to cars.

The Family Home

Similar to with Bankruptcy and vehicles, the approach that will be taken to your home will certainly be dependent upon equity. In case there is no equity in the house, then there is no use in forcing you to sell it. If there is absolutely no funds to be earned by taking the house from you, then they are hardly ever going to bother. As an example if you possess a home worth $400,000 and you owe the financial institution $400,000 then more than likely you will have the chance to keep your residential property after bankruptcy.

The worst part about all of this though is that going bankrupt does not take into consideration feelings or excuses– you will not merely be able to always keep your car or residence because you ‘need it’ or considering that you have a powerful emotional attachment. Bankruptcy can be cruel, but that is why you should make sure you speak with the right people. Do not jeopardize your family home by presuming or wishing you will have the capability to maintain it post-bankruptcy just because you need to live somewhere.

If you are stressed out over your home or any other part of this Bankruptcy Means Test, then call us at Bankruptcy Experts Sydney on 1300 795 575 if you would like to know more about Bankruptcy and Houses or anything to do with Bankruptcy. We are here to really assist you. Visit our website for a lot more information, www.bankruptcyexpertssydney.com.au.

We offer a Free- No Commitment Consultation so call us today 1300 795 575.